Gabriel Nahkl was convicted by the District Court of NSW on eight charges, brought by ASIC, of engaging in dishonest conduct with investor funds, according to a statement.
The conduct affected 12 investors while Nakhl was a representative of Australian Financial Services Limited (in liquidation) and as sole director of SydFA Pty Ltd (deregistered), ASIC said.
The court found that Nakhl advised clients to set up self-managed superannuation funds and to invest their superannuation and other funds in products such as shares, managed funds and high interest rate bank accounts.
Rather than investing the 12 investors’ funds in these products, Nakhl used these funds ‘as he pleased’ and for his own purposes, ASIC said.
Nakhl then lied to the investors, telling them that he had invested their funds in accordance with his advice and that their investments were performing well.
In addition, Nakhl also tried to cover up his wrongdoing by having these 12 investors sign documents that supposedly authorised Nakhl to use the funds in the way he did.
These 12 investors allowed Nakhl to invest about $6.7 million on their behalf. Nakhl lost around $5.1 million of these invested funds.
“Mr Nakhl deliberately misled his clients and used their savings as he pleased. Clients should be able to trust their financial advisers,” said ASIC commissioner Sean Hughes.
“In this case, Mr Nakhl dishonestly and deliberately breached his clients’ trust. ASIC welcomes the sentencing decision handed down today.”
[quote=Anonymous]WTF was the Licensee doing??!! [/quote][quote=Anonymous]WTF was the Licensee doing??!! [/quote]
Pete Daly was the boss at AFS and now he runs Beacon 🙁
Fully support this outcome, but how long did it take? We have a similar case in our Shepparton area where the lady in question is still roaming free more than 5 years after being charged and banned by ASIC as the case is still going through the courts…
This tragedy goes much deeper than the glossy press release versions ASIC would have you believe. Mr. Nakhl is a diagnosed Autistic Savant, with heaps of forensic evidence presented in court which explained his odd behavior patterns, why he lived at his parents’ house, doesn’t understand basic human behavior/social boundaries but was desperate to connect with the world of humans, never took a salary, lived on less than 30K per year in Sydney, etc…the list goes on. Also missing from the article are multiple clients who vehemently testified as character witnesses on Mr. Nakhl’s behalf, even after losing money.
Dig deeper in this story and decide for yourself. The tragedy of what ASIC has perpetrated on everyone involved becomes almost too much to bear. 🙁
Good. This type of behavior deserves the stiff sentences
Why do you newshounds continually refer to these criminals as ‘advisors’. This guys is simply a thief . Would you characterise a person who commits GBH as a doctor who gave bad treatment? Of course not. Really standards need to lift in more areas than one! By the way- if you don’t recognise my posting name – you should…
The most important question we should be asking is why has it taken them 6 YEARS to put him in jail? This happened from 2011 !!!!!! How Insane !!
How is that a fair sentence??? George Pell rapes kids. Gets 6 years. People one punch kill people. Get 4 years.
I know I and most peoplewould give all their money not to have their children raped or killed.
WTF was the Licensee doing??!!
Couldn’t find him on the advisers register…
Accountant?
How did he get his hands on their cash and why weren’t the investments in their names. Also what was the Dealer Group doing. Come on ASIC falling down on the job again !
And we have another risk only adviser here
Please to hear it. Maggots like this bloke have caused all of us a world of pain. Put him in a cell with ‘Bubba’ who can keep him company at night.
Mmm, interesting thought. Whats worse…a murderer / rapist, repeat paedophile or this grub adviser? One gets treated harshly whereas the others tend to get less than 10 years these days. Is it just me or is the system inconsistent??
He should have worked for one of the banks. Then he could have done as he pleased and got away with it all plus the golden handshake. They will probably hire him when he gets out of prison anyway. If not then he will probably go into politics. He would probably have too many morals to join either of the major parties though.
These sort of comments have to stop. Not everyone who works for a bank is bad and Sam Henderson for instance did not work for a bank.
If we want to be regarded as a profession then we have to start acting like one. Accept that the industry has not done the right thing and lets fix it not try an blame everyone but ourselves.
There is no place in the industry for crooks but there is also no place for people who wont take responsibility for doing what needs to be done to clean things up.
The banks don’t actually provide any necessary service. They loan money they don’t have and charge us for the privilege. Society would be way better without them. Everyone would own their own house and not be a debt slave to the 0.000001% for their entire lives. Banks and everyone who works for them are evil
I guess you’re a glass half empty type of individual then?
Get over yourself and off your high horse please. Other than your personal opinion, what statistical proof do you have that suggests there is some sort of wide divide between IFA’s and bank advisers when it comes to quality of advice and service? I know very good planners of great integrity in both systems and also incompetent advisers with little idea in both. The INDUSTRY needs to improve and while you take no ownership and suggest it’s everyone who isn’t you, that will be a slower process. Show some maturity as well as some respect toward you fellow professionals please.
Dave, is it $2 billion the banks are paying back to their clients? Makes pretty good statistical proof.
Good outcome sentence wise and I hope the clients have some form of recourse to try and gain back all if not some of their savings that have been misappropriated. Now we just have to work on getting the minimum 3 years 8 months (non parole) verdict handed down to Bell extended !
Over $7 million of his assets frozen so im sure they will there funds back !!
What a grub